Global Gift Card Market All Set to Flourish: Expected to Reach Worth USD 851.1 Billion in 2026
Published | January 2020
According to a study conducted recently by the strategic consulting and market research firm BlueWeave Consulting, the global gift card market was worth USD 382.2 billion in 2020and is further projected to reach USD 851 billion by 2027, at a CAGR of 13.8% during the forecast period (2021-2026). The demand for gift cards is increasing due to the increase in the number of special occasions and the rising popularity of the gifting culture. Moreover, the sales of gift cards increase at an exorbitant rate during festivals and special days, such as Birthdays, Father's Day, Mother's Day, etc. Additionally, many vendors are launching unique gift cards to stay ahead of the curve. Numerous entertainment corporations are also teaming up with technology solutions providers to launch e-gift cards to be used across major online and retail marketplaces.
Partial Redemption Feature Motivating Consumers to Opt for Gift Cards
Nowadays, consumers prefer participating in loyalty programs to earn gift cards as rewards. They could use the prepaid value of these cards to make a purchase later. Consumers generally use gift cards as a budgeting tool as they prefer making purchases that are equal to the amount available on the card instead of paying anything extra out of their pockets. This is the key factor encouraging consumers to opt for gift cards. Furthermore, some outlets also offer deals on gift cards for their regular customers. On the purchase of a gift card, a bonus gift card of a lesser amount is offered, which in turn helps drive customer satisfaction. According to First Data’s U.S. Prepaid Consumer Insights, 68% of the consumers expressed that gift cards are their preferred form of incentive, with coupons and bonus bucks trailing behind. According to Paycorp, a partnership with a complementary business could help expand the services or products offered to customers, resulting in a win-win situation for all parties involved-- increased sales for the businesses and discounted prices for the customer.
Usage of Gift Cards as Promotional Tool Remains Mainstay of Key Players
The prominent strategy of players in the gift card market involves the usage of gift cards as promotional tools for their companies. Moreover, the players are indulged in partnerships with other companies to provide offers on their products by the means of gift cards. This strategy has supported the companies to increase their sales in terms of volume. In 2019, InComm Company, in partnership with Razer Inc., launched Google Play gift cards in Malaysia, making the product available at nearly 2,250 7-Eleven stores across Malaysia. Also, in 2019, CashStar, Inc. launched the Interactive Gift Card Platform, which has registered novel growth opportunities for market players. Companies including Uno Chicago Grill, Gorham Bike & Ski, and Travelocity Incentives are majorly involved in offering interactive gift cards via the CashStar platform. The demand for gift cards is expected to expand as players are concentrating more on introducing a lottery card.
E-Portal (Online) Distribution Channel has the Largest Share in Global Gift Card Market
The e-portal (online) distribution channel accounts for 32.95% of the share in the global gift card market. The increased use of smartphones, coupled with more affordable data plans, is boosting m-Commerce adoption, which in turn is driving the growth of the gift card market. Consumers are increasingly downloading mobile apps, including Amazon, Flipkart, and eBay for online shopping as they provide the ability to navigate more quickly and easily make purchases on-the-go, thereby, multiplying the number of consumers making purchases online. For instance: According to survey data from 1,182 U.S. stores that use Rise.ai Inc.’s re-engagement software, the U.S. retailers sold 114% additional digital gift cards in the third quarter of 2020 compared with Q3 2019. Additionally, the revenue from selling the digital gift cards increased 65% year over year in Q3, according to Rise.ai, which assists retailers to manage gift cards, referrals, refunds & loyalty programs.
Global Gift Card Market: By Region
Based on the region, the gift card market has been segmented into North America, Europe, the Asia-Pacific, Latin America, and the Middle East & Africa. North America is likely to have the fastest growth in the global gift card market over the forecast period. North America is at the immobility stage due to the presence of large numbers of companies in the region. Additionally, growing urbanization, higher per capita income, and demand in the corporate sector in developing countries like China and India are fueling the overall growth of the global gift card market.
New players have a much lower chance of succeeding in this market space given the high capital investment required to enter the industry. Some of the leading players in the global gift card market are Amazon, iTunes (Apple Inc.), Google Play (Alphabet Inc.), Starbucks, Walmart, National Gift Card Corp., QwikCilver Solutions Private Limited, Sodexo, Zara, Best Buy, JCB Giftcard, Givex Corporation, Yiftee, TenderCard, RollerSoftware, GiftFly LLC, and other prominent players.
Google Play held a 2.35% market share in 2019 in the global gift card market and ranks number 4 in the world. Acquisitions, joint ventures, investments, and divestitures are important elements of Google Play (Alphabet Inc)’s an overall corporate strategy and use of capital. These transactions could have a substantial impact on the company’s financial condition or results of operation. For instance, Google Pay users in India can now buy and send e-gift cards. The Google-owned digital payments platform has collaborated with Pine Labs-owned gifting company Qwikcilver to provide digital gift cards from over 150 brands that can be used at offline stores across 1,500 cities and major online portals.
Don’t miss the business opportunity of the global gift card market. Consult our analysts to gain crucial insights and facilitate your business growth.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of global gift card market size, along with current trends and forecasts. The report promises to provide recent technology trends of the global gift card market and industry insights to help decision-makers to make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
BlueWeave Consulting provides comprehensive Market Intelligence (MI) Solutions to businesses regarding various products and services online & offline. We offer all-inclusive market research reports by analyzing both qualitative and quantitative data to boost up the performance of your business solution. BWC has built its reputation from the scratches by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.